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Shiba Inu is a winner
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Shiba Inu surges 5% on the back of a rise in Shibarium’s network activity
Key points:
The number of active addresses on Shibarium that executed at least one transaction each day increased by 37% between the 15th and 18th of February.
SHIB’s Bollinger Bands revealed that the memecoin’s price was entering a relatively high volatility zone.
News - Shiba Inu’s much-talked-about L2 Shibarium once again gained traction after a period of dormancy. To be precise, between the 15th and 18th of February, the daily count of active addresses that completed at least one transaction on the L2 rallied by 37%.
Shibarium’s activity is rising - Data from Shibariumscan revealed that the L2’s demand also witnessed an uptick in the recent past as a few key metrics surged. For example, the number of new transactions completed on Shibarium rose by 140%, reflecting a considerable hike in the L2’s demand. It was also interesting to note that the rise in Shibarium’s demand was preceded by a single-day 8,140% hike in BONE transfers on the network between the 14th and 15th of February. Shibariumscan data shows that in just one day, the number of new BONE transfers on the chain increased from 415 to 33,775.
Is anything bullish for SHIB? While the L2’s network activity rose, SHIB’s price action also followed a similar trend - it was up by over 5% in the last seven days. One of the key market indicators, Chaikin Money Flow (CMF), had a reading of 0.16, at press time. A CMF value above the zero line and rising is typically seen as a sign of strength in the market. This serves as a bullish signal, it indicates an inflow of money, suggesting the possibility of a continued price rise.
MATIC reclaims $1 but on-chain metrics give mixed signals
Key points:
Polygon’s Relative Strength Index (RSI) was in the overbought zone, hinting at an upcoming price correction.
At press time, MATIC again went under $1 and was trading at $0.9888.
News - Polygon’s price remained under $1 for several months, but the scenario changed of late as the token’s value went above that mark. This was made possible after a 20% increase in the last seven days. Interestingly, the recent milestone might not be the end for the token, as some on-chain metrics hinted at a further uptick.
What do other metrics suggest? AMBCrypto’s analysis revealed that MATIC’s circulation decreased, indicating a further upside for the token. A rise in circulation indicates possible selling pressure that could cause a cryptocurrency's price to decline. However, since MATIC’s circulation dropped, it could foreshadow price stability or a significant upside.
Though MATIC’s circulation looked optimistic, a few other indicators told a different story. At press time, MATIC’s Money Flow Index (MFI) was in the overbought zone. This might increase selling pressure on the token, in turn pushing its price down. If that happens, there are a few support levels that MATIC’s value might reach. Should the price retrace, the next targets could be around $0.88 and $0.92.
The flip side- Though the chances of a price correction looked high, if MATIC manages to maintain its uptrend, the Liquidation Heatmap showed that longs could still profit from targeting higher prices above $1.05.
UK might pass Stablecoin, staking laws within six months from now
Key points:
In 2022 Prime Minister Rishi Sunak of the UK promised to turn his nation into a “global crypto hub.”
The government is reportedly trying "very hard" to pass crypto-specific laws in the United Kingdom, according to Minister Bim Afolami.
News - The United Kingdom government is planning to introduce new laws focusing on regulating Stablecoins and crypto staking. Economic Secretary to the Treasury Bim Afolami said the government was working hard to ensure the new legislation was passed ahead of this year’s general election.
What does it mean? The UK government pledged to bring in more laws to regulate cryptos better when Rishi Sunak was elected as the prime minister in 2022. However, no significant progress has been made. Back in 2023, the U.K. government said it would aim to introduce more crypto-specific regulation during 2024 and saw the regulation of fiat-backed stablecoins brought under the purview of the Financial Conduct Authority (FCA). Therefore, if the government actually passes a law to regulate stablecoins and other related spaces, it will be a major progress.
What’s more? On July 3, 2023, the UK Law Commission published four major recommendations to reform domestic laws on crypto use and ownership. To account for and safeguard the special qualities provided by digital assets, the commission advocated for the setting up of a new "distinct" category of personal property. As the UK now awaits its next general election, how the government plans to introduce the new law within six months will be interesting to keep an eye on.
Starknet token launch creates a negative impact as the user count plummets
Key points:
Starknet will launch its STRK token on the 20th of February 2024.
The L2’s number of daily transactions dropped sharply last week, along with its daily active addresses.
News - Starknet will be launching its new token under its Starknet Provisions Program airdrop. Top exchanges like Binance and others have already announced that they plan to list STRK on the 20th of February 2024. However, the L2’s active users have dropped significantly over the past seven days.
Network activity is dropping - The L2 had a promising uptrend in terms of network activity during February. To be precise, Starkbet’s active users reached a nearly three-month high of over 220,500 on the 14th of February. However, soon after Starknet announced its plans to launch the STRK token, things started to turn against it. The L2’s active users count plummeted to near pre-announcement levels, and as of the 19th of February the network saw just over 84,000 active accounts.
Any good news? Though at first the drop in active users looked concerning, other datasets pointed out that Starknet’s performance in the DeFi space remained on par. Based on data from DeFiLlama, Starknet's locked total value was $54.18 million, down approximately 5.7% from its all-time high of $57.5 million. Meanwhile, at press time, the STRK token was trading at $1.98 on pre-market perpetual exchanges.
More stories from the crypto ecosystem
Interesting facts
Bitcoin has a maximum market cap of 21 million coins. So, if all coins were distributed to the population equally, each person would receive around 0.0027 BTC. That’s roughly $200 AUD.
On the other hand, Ethereum does not have a fixed cap on supply. It only has a fixed annual supply limit of 18 million ETH, which was defined as part of the project’s initial presale back in 2014.
Data shows that even though China has banned several cryptocurrencies, an estimated 20% of the worldwide Bitcoin network is actually in China.
Top 3 coins of the day
Dogecoin (DOGE)
Key points:
Negative sentiment around Dogecoin surged despite price upticks.
DOGE’s network activity remained high as daily active addressers surged.
What you should know - Dogecoin was among the only two cryptos on the top 10 list that managed to paint the daily charts green. It was up by more than 1% in the last 24 hours. At the time of writing, it was trading at $0.08737 with a market capitalization of over $12.51 billion. However, the disappointing news was that the meme coin’s uptrend might not last. Consider this, its Relative Strength Index (RSI) registered a downtick and, at press time, had a value of 60. This indicated that the possibility of a price correction was high. If that were to happen, the meme coin’s price might once again go back to the support level near $0.0775. However, if the rally continues further, DOGE might face resistance near $0.097.
Hedera (HBAR)
Key points:
HBAR’s trading volume spiked by over 300% in the last 24 hours.
The token’s Money Flow Index (MFI) entered the overbought zone, which looked bearish.
What you should know - Hedera showcased a remarkable performance over the last few hours as its value skyrocketed. The token’s price surged by more than 12% in the last 24 hours. At press time, it was trading at $0.1068 with a market capitalization of over $3.5 billion. Thanks to the uptick, HBAR changed its old resistance at $0.092 to a new possible support zone. In fact, the token’s daily chart also displayed the possibility of a bullish flag formation over the next few days. Technical indicator MACD exhibited a major bullish advantage in the market, hinting at a further price increase. On the other hand, the price touched the upper limit of the Bollinger Bands - there were chances that the token’s bull rally would end soon.
Solana (SOL
Key points:
Investors’ confidence in SOL was low as negative sentiment around the token increased.
Derivatives investors continued to buy SOL at a lower price as its Binance funding rate went up.
What you should know - Solana shed a substantial amount of its value in the last 24 hours. The price dropped by more than 3% in the last 24 hours. At press time, it was trading at $109.13 with a market capitalization of over $48 billion. AMBCrypto’s analysis revealed that the token’s price continued to move inside a channel over the last several weeks. The token faces major resistance near $121 and strong support at the $81 mark. The possibility of a continued price drop seemed high, as its MACD approached a bearish crossover. The Relative Strength Index (RSI) also registered a downtick and was headed towards the neutral mark, further hinting at a southward price movement.
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